Stock X has a beta of 2, expected return of 30%, and total risk (variance) of 16%. The riskfree rate is 4%. The average investor’s certainty equivalent for stock X is 14%. What is the variance of the market portfolio?

Stock A has an expected return of 15% and covariance of 20% with the market portfolio. Stock B has an expected return of 25% and covariance of 40% with the market portfolio. What is the riskfree rate?